The response of quantity demanded to price changes is shown by:
A) Price elasticity of demand.
B) The determinants of demand.
C) Opportunity cost.
D) Income elasticity of demanD.

Question

Quizplus · Accepted Answer

Price elasticity of demand is a measure of how responsive consumers are to changes in the price of a product or service. It measures the percentage change in quantity demanded in response to a one percent change in price. Therefore, it directly and specifically shows the response of quantity demanded to price changes.

The Response of Quantity Demanded to Price Changes Is Shown